TD Cowen Upgrades Despegar to 'Hold' on Prosus Buyout Deal
Tuesday, Dec 24, 2024 11:50 am ET
3min read In a recent development, TD Cowen has upgraded Despegar.com, Corp. (DESP) to a 'hold' rating following the announcement of a buyout deal with Prosus. This strategic move, valued at approximately $1.7 billion, is expected to significantly enhance Despegar's competitive advantage and accelerate its growth strategy in Latin America.
Prosus, a leading global technology company, brings substantial resources, operational expertise, and advanced AI capabilities to the table. This acquisition aligns with Despegar's long-term growth strategy, providing access to Prosus' extensive network of companies and strong balance sheet. As part of the Prosus Group, Despegar is poised to broaden its market leadership and expand its services across Latin America.
The acquisition is expected to close in Q2 2025, subject to shareholder and regulatory approvals. Despegar's Board of Directors has approved the merger agreement and recommended shareholder approval following the unanimous endorsement of a Transaction Committee composed of independent directors.
Despegar's CEO, Damian Scokin, expressed excitement about joining the Prosus Group, stating that the transaction represents a significant step forward in broadening market leadership and expanding services across Latin America. Prosus' CEO, Fabricio Bloisi, echoed this sentiment, emphasizing the opportunity for growth and the potential to deliver the best OTA travel solution in Latin America.
The acquisition is expected to provide significant value to Despegar's shareholders and improve customer experience through expanded services and solutions. With Prosus' extensive resources, operational expertise, and advanced AI capabilities, Despegar will be able to expand its services and solutions tailored to customer needs. This includes access to more services, enhanced customer experiences, increased loyalty benefits, and more comprehensive solutions.
In conclusion, the Prosus acquisition of Despegar presents significant synergies, with Prosus' extensive resources, operational expertise, and advanced AI capabilities set to accelerate Despegar's growth and innovation strategies. As part of the Prosus Group, Despegar will enhance its market presence, strengthen its ability to innovate and compete, and offer customers access to more services, enhanced experiences, and comprehensive solutions. This strategic move underscores Despegar's position as a key market player and highlights its successful commercial execution and consistent leading innovation.
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